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Cash-scarce Venezuelans are turning to payment apps as the result of the country's economic crisis.
With hyperinflation in Venezuela hovering around 4,000 percent and a maximum ATM withdrawal of just 10,000 bolivars, simple transactions are becoming time-consuming. Fintech entrepreneurs and developers are helping fill the gap. Last year, Caracas-based VIPPO had a 30-fold increase in customer registrations.
"We saw in 2010 and 2011 that this (electronic pay) was going to be a trend. It was a global trend," said Miguel Leon, VIPPO electronic pay system founder.
Meanwhile, shopping centers, universities and others are creating their own e-payment apps since banks and outdated public infrastructure struggle to meet demand.
Venezuela is helping boost digital transactions unintentionally by slowing cash production. Government data shows that the volume of Venezuelan bolivars increased 14 percent in 2017, less than half the previous year.
"There is also an interest among governments to end cash, because cash costs the government more money. Sending money, transporting money, all that costs money, and costs even more with a large quantity of money," Leon explained.
Venezuela has some of the world's slowest internet speeds, and a significant portion of the population still lacks bank accounts and cellphones. But that's not stopping the Fintech revolution.
"Perhaps our economy will be cashless before Denmark, which is one of the countries that has put more effort into this (electronic pay)," Leon expected.
(CGTN)
